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IBM Honing Its Online Music System In Japan.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| August 01, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Doug Tsuruoka

The future of free downloadable music on the Web looks bleak, though federal courts have given song-swapper Napster Inc. a reprieve by letting it stay online. Even Napster plans to deploy a paid subscription service to avoid being sued.

Developing a system for buying music online legally isn't easy. The hardest part is devising a way to charge for music while stopping others from illegally copying what's sold.

Lots of tech companies are working on the problem.

IBM Corp. is one. Since last year, the world's biggest computer maker has been quietly testing in Japan a system for selling secure music downloads.

Under the pilot program, thousands of Japanese consumers have downloaded and paid for digital music on their PCs. As of June, another group of Japanese has been doing the same on cell phones.

IBM's project, which has been a big hit in Japan, is a dry run for selling online music in the U.S. market.

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